A Complete Guide to Crypto Stocks and How Can You Buy Them?

Cryptocurrencies have been making headlines for their explosive growth and volatility. But did you know that you can also invest in companies that are related to the crypto industry? These are called crypto stocks, and they can offer you exposure to the crypto market without buying the actual coins. In this blog, we will explain what crypto stocks are, where you can buy them, and some of the top crypto stocks to watch in 2024.

What Are Crypto Stocks?

Crypto stocks are publicly traded companies that operate businesses that are highly exposed to the cryptocurrency market or blockchain technology. These stocks include popular crypto exchanges, cryptocurrency miners, blockchain technology specialists, and other companies that have large cryptocurrency holdings on their balance sheets.

Crypto stocks can benefit from the growth and innovation of the crypto industry, as well as the increasing adoption and demand for cryptocurrencies. 

Where to Buy Crypto Stocks?

Anyone with an online brokerage account can buy and sell the stocks of crypto-related companies, as they are listed on the major US stock exchanges, such as Nasdaq and NYSE. These stocks offer disclosure to the crypto industry, without requiring the ownership of the actual coins.

Top Crypto Stocks 

There are many crypto stocks that you can choose from, depending on your risk appetite, investment goals, and preferences. Here are some of the top crypto stocks that you can consider in 2024:

Microstrategy Incorporated (MSTR)

Microstrategy is a software company that provides business intelligence, cloud computing, and mobile software solutions. It is also one of the largest corporate holders of Bitcoin, with over 189,150 BTC on its balance sheet by the end of 2023. Microstrategy has been aggressively buying BTC since 2020, as part of its strategy to hedge against inflation and currency devaluation. Microstrategy’s stock price has been highly correlated with Bitcoin’s price, making it a proxy for the leading cryptocurrency.

CME Group INC (CME)

CME Group is a financial derivatives exchange that offers futures and options contracts on various asset classes, including cryptocurrencies. CME Group was the first regulated exchange to launch Bitcoin Futures in 2017 and has since, added Ethereum Futures and micro Bitcoin Futures to its offerings. CME Group’s stock price has benefited from the growing demand and volume of its crypto products, as well as its diversified and resilient business model.

Coinbase Global, Inc (COIN)

Coinbase is the largest and most popular crypto exchange in the US, and the first major crypto company to go public in 2021. Coinbase offers a platform for users to buy, sell, store, and trade cryptocurrencies, as well as a suite of products and services for institutional and retail investors, such as Coinbase Pro, Coinbase Wallet, Coinbase Earn, and Coinbase Commerce. Coinbase’s stock price has reflected the growth and volatility of the crypto industry, as well as its competitive advantages and challenges.

Block (SQ)

Block, formerly known as Square, is a digital payments and financial services company that is led by Jack Dorsey, another prominent advocate of cryptocurrencies. Block has invested $220 million in Bitcoin in 2020 and 2021 and also enables its users to buy, sell, and hold Bitcoin through its Cash App. Block’s stock price has been driven by the increasing adoption and revenue of its Cash App, as well as its innovation and expansion in the crypto space.

Riot (RIOT)

Riot Blockchain is a cryptocurrency mining company that focuses on Bitcoin mining. Riot Blockchain serves one of the largest and most efficient Bitcoin mining operations in North America, with over 25,000 miners and a hash rate capacity of 2.6 exahash per second. RIOT’s stock price is heavily influenced by Bitcoin’s price and mining difficulty.

Hut 8 Mining Corp. (HUT)

Hut 8 Mining is another cryptocurrency mining company that specializes in Bitcoin mining. The company offers one of the oldest and most reputable Bitcoin mining operations in Canada, with over 14,000 miners and a hash rate capacity of 1.4 exahash per second. HUT’s stock price has also been influenced by Bitcoin’s price and its operational performance and growth initiatives.

Robinhood Markets, Inc. (HOOD)

Robinhood is an online brokerage that offers commission-free trading of stocks, options, ETFs, and cryptocurrencies. It is popular among young and novice investors, who are attracted by its user-friendly and gamified platform, as well as its social and educational features. HOOD’s stock price has been affected by the growth and regulation of its crypto trading business, as well as its customer satisfaction and loyalty.

Argo Blockchain plc (ARBKL)

Argo Blockchain is a cryptocurrency mining company that focuses on Bitcoin and zcash mining. Argo Blockchain provides one of the most efficient and green Bitcoin mining operations in the world, with over 20,000 miners and a hash rate capacity of 1.7 exahash per second. Argo Blockchain’s stock price has been impacted by crypto’s environmental, social, and governance (ESG) credentials and goals.

Conclusion

Crypto stocks are an alternative way to invest in the crypto industry, without buying the actual coins. Crypto stocks can offer you exposure to the growth and innovation of the crypto market, as well as the opportunity to diversify your portfolio and hedge against inflation and currency devaluation. However, crypto stocks are also subject to the risks and challenges of the crypto market, such as regulatory uncertainty, security breaches, hacking attacks, competition, and price fluctuations. Therefore, you should do your own research, understand the fundamentals and valuations of the crypto stocks, and only invest what you can afford to lose.

FAQs

What are the advantages of investing in crypto stocks?

Some of the advantages of investing in crypto stocks are access to a regulated and secure market, with high liquidity and customer service. In addition, portfolio diversification and hedge against inflation and currency devaluation.

What are the disadvantages of investing in crypto stocks?

Some of the disadvantages of investing in crypto stocks are higher fees and commissions, tax implications, and limited crypto exposure. Also, missing out on the potential rewards of holding the actual coins, such as staking, lending, and earning.